TIISETSO MOTSOENENG: Despite a bad year, bosses have an appetite for Astral shares
The poultry producer’s leaders are buying up shares to demonstrate their confidence in a rebound
In any other year, a bumper maize harvest would have given shareholders in Astral Foods, one of SA’s biggest poultry producers, a reason to smile.
SA’s maize production is expected to top 15.6-million tonnes in the 2019/2020 production season, almost 40% more than domestic consumption. One would normally expect such a wide supply-demand balance to lead to lower prices and bring some relief to producers like Astral, whose profit margins have been gobbled up by elevated grain prices.